IL&FS puts six properties on the block in bid to pare debt
Photo Credit: VCCircle

Infrastructure Leasing and Financial Services (IL&FS) has invited bids for six of the group's properties amid continuing efforts to divest assets to pay off its huge debts.

In a newspaper advertisement, IL&FS said it was looking to sell five real estate assets in Mumbai and one in Kolkata. Interested parties have until January 15 to submit their bids.

The properties include Business Arcade, a 42,419 sq-ft office building at Lower Parel, a prime business district in Mumbai, and two other office spaces in nearby locations.

Other properties which have been put on the block include two fully-furnished office spaces — one each at Nariman Point in south Mumbai and Dr UN Brahmachari Street in Kolkata. 

IL&FS is also selling a 1,376 sq-ft two-bedroom flat at Mumbai's Malabar Hill, as per the sale notice.

While the valuation of these properties is yet to be ascertained, market estimates suggest IL&FS is likely to fetch nearly Rs 180-190 crore ($26 million) from the sale of these assets, of which a significant chunk may come from the Business Arcade office building in Mumbai.

Besides, the company has also been looking to sell its 400,000 sq. ft. corporate office worth around Rs 1,300-1,500 crore in the suburban commercial region of Bandra Kurla Complex (BKC) in Mumbai.

The infrastructure financier and developer is selling assets as part of a wider restructuring after the company and its units started defaulting on some of their debts in late August. The defaults triggered concerns about risk in the country’s financial system and led to the Indian government taking control of IL&FS in October. IL&FS and units owe about Rs 91,000 crore, including Rs 57,000 crore to state-run banks.

In November, the new board of IL&FS, led by billionaire banker Uday Kotak, had submitted a revival plan to the National Company Law Tribunal (NCLT) that included the sale of business verticals or individual assets.

Ten days ago,  IL&FS announced plans to sell its stake in IL&FS Investment Managers Ltd along with all its associated fund management platforms as well as IL&FS Education & Technology Services Ltd.

The move came just days after IL&FS had kicked off a process to sell its road assets. The company is also selling units IL&FS Securities Services and ISSL Settlement & Transaction Services.

Earlier this month, IL&FS initiated the process to sell its fleet of 36 luxury cars and invited bids from prospective buyers. 

The company has also lined up sales of fitness equipment, furniture and white goods under its ownership.

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